ANNOUNCEMENT 19 Jul 2021

In July 2021, the Spanish government established the Next Tech Fund to finance digitalisation projects and technological businesses.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Ministerio de Asuntos Económicos y Transformación Digital. Ministry of Economic Affairs and Digital Transformation. "El Gobierno lanza el Fondo Next Tech, que movilizará hasta 4.000 millones de € de inversión público-privada para impulsar el crecimiento de empresas". 19/07/2021. Available at: https://www.ico.es/es-ES/web/guest/el-gobierno-lanza-el-fondo-next-tech-que-movilizar%C3%A1-hasta-4.000-millones-de-%E2%82%AC-de-inversi%C3%B3n-p%C3%BAblico-privada-para-impulsar-el-crecimiento-de-empresas

Ministerio de Asuntos Económicos y Transformación Digital. Ministry of Economic Affairs and Digital Transformation. Fondo Next Tech. 19/07/2021. Available at: https://portal.mineco.gob.es/es-es/comunicacion/Paginas/210719-fondo-next-tech.aspx

Presidencia del Gobierno de España. Spanish Government. "El Gobierno lanza el Fondo Next Tech, que movilizará hasta 4.000 millones de euros de inversión público-privada". 19/07/2021. Available at: https://www.lamoncloa.gob.es/serviciosdeprensa/notasprensa/asuntos-economicos/Paginas/2021/190721-fondo.aspx

Update
Instituto del Crédito Oficial. Official Credit Institute. Press release. "El ICO, a través de Fond-ICO Next Tech, movilizará 140 millones € de financiación a empresas digitales y proyectos tecnológicos de alto impacto". 01/03/2022. Available at: https://www.ico.es/es-ES/web/guest/el-ico-a-trav%C3%A9s-de-fond-ico-next-tech-movilizar%C3%A1-140-millones-%E2%82%AC-de-financiaci%C3%B3n-a-empresas-digitales-y-proyectos-tecnol%C3%B3gicos-de-alto-impacto

Inception date: 19 Jul 2021 | Removal date: open ended

Capital injection and equity stakes (including bailouts)

On 19 July 2021, the Spanish government established the Next Tech Fund to finance companies' high-impact digitalisation projects and/or technological start-ups and scale-ups. The initial budget allocated to the fund was set at EUR 2 billion (approx. USD 2.4 billion). 

The objective of the fund is to foster public-private investment in order to mobilise up to EUR 4 billion (approx. USD  4.7 billion). For this, the implementing authority, the Official Credit Institute of Spain (ICO in Spanish) will invest in investment or capital funds specialised in the tech sector and high-growing businesses. In this sense, final beneficiaries are scale-ups (companies with over EUR 3 million of annual turnover) and start-ups (companies with less than EUR 1 million of annual turnover). No restrictions in terms of economic sector were specified.

Notably, the Next Tech Fund was established under the framework of Spain's national recover and resilience plan (see related state act).

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support granted here is discriminatory.

Update

On 1 March 2022, the Official Credit Institute of Spain (ICO in Spanish) announced the investment of EUR 70 million (USD 77.7 million) into the Leadwind venture capital fund in order to stream down support to high-impact companies in the digital technologies sector. The support is the first transaction of the Fond-ICO Next Tech launched. 

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